VKB Resilience General Obligation Bond Financial Facts & Figures Town Hall Discussion
Dine for No Kid Hungry Employee Scripts
August 6, 2020
For Dial-in Instructions: https://keybiscayne.fl.gov/clientuploads/COVID19/Virtual_Publi c_Meeting_Instructions.pdf Upcoming GO Bond Town Halls: August 20, 2020 September 3, 2020 September 17, 2020
VKB Programs for Resilience
Hardening Infrastructure
Shoreline Protection
• Storm Protection • Property Values
Mitigate Flooding
• First Line of Defense • Property Values • Safety • Property Values
Stormwater Management
• Safety/Reliability • Property Values
G.O. Bond Ballot Language Shall the Village issue general obligation bonds not exceeding $100 million in one or more series maturing not later than thirty years from their issuance dates, bearing interest not exceeding the maximum rate allowable by law, payable from ad valorem taxes levied by the Village, to: • Mitigate effects of sea level rise and flooding; • Protect Village beaches and shoreline; and • Harden infrastructure to the effects of hurricanes? Shall the above described proposal be adopted? [ ] For Bonds [ ] Against Bonds
Public Participation is Essential Upcoming GO Bond Virtual Town Halls: August 20, 2020 September 3, 2020 September 17, 2020 For Dial-in Instructions:
https://keybiscayne.fl.gov/clientuploads/COVID19/Virtual_Public_Meeting_Instructions.pdf
Email:
VKBresilience@keybiscayne.fl.gov
G.O. Bond Process
Checks and Balances
• An initial project list would be prioritized according to 2017 CRC Vulnerability Analysis, upcoming stormwater system analyses, utility undergrounding masterplan and upcoming shoreline protection needs. • Engineering professionals would be engaged to begin design, cost estimating and scheduling for start and projected completion dates for the first several projects on the list. • When the planning is complete, Council would approve moving forward with a desired project(s). • Council would approve the selection of underwriters to structure and market the first series of bond issuance(s). • Council would approve by ordinance and supplemental resolution a series of bonds sufficient to provide funding for the first set of projects (or portions thereof) that can be completed within 3 years after bond issuance. The tax law requirement is that the bond money must be spent within 3 years from the date of bond issuance.
G.O. Bond Process Checks and Balances, cont'd • The series of bonds would be issued and the proceeds received are used to pay or reimburse the Village for costs of the projects. • The same procedures are undertaken by Council on a continuous basis to fund the next set of projects on the priority list as they become ready to move forward. For example, if, within a year of the first bond issuance, Council decides the next set of projects are ready for consideration, steps 2 through 6 will be undertaken for the next projects in line, even if the first projects are still ongoing. • The decision by Village Council to use the GO Bond may be informed by an Oversight Committee, however, the Council has not yet decided whether to create an Oversight Committee. Village Council may choose to do so as part of the process of moving forward with projects.
Frequently Asked Questions What Prompted the Village to Consider the Need for Funding Resiliency Projects Now? The Southeast Florida Regional Climate Change Compact recently released its 2019 updated sea level rise projections which indicate that over the next 20 years sea level is expected to rise 10 to 17 inches, significantly threatening the Village of Key Biscayne Shoreline as well as intensifying the existing street flooding and all the associated negative impacts to safety, economy and quality of life.
Frequently Asked Questions What is a General Obligation (G.O.) bond? A General Obligation Bond, also known as a G.O. Bond, is a funding mechanism that is financially backed by the assessment of ad valorem taxes. Ad Valorem taxes are commonly referred to as property taxes. A G.O. Bond must be approved by the voters before proceeding with implementation.
Frequently Asked Questions Why is the General Obligation Bond being considered? A GO Bond is a steady financing mechanism that would allow for the coordinated implementation of significant resiliency/climate adaptation projects. A stable funding source allows for implementation of projects in a unified, logically sequenced manner that yields a cost-effective infrastructure upgrade without duplication of effort and a piecemeal approach. Pledging the full faith, credit, and taxing power of the Village, generally allows for longer term financing (e.g., 30 years) at a lower cost as compared to other sources of funding.
Alternative Financing Approaches
G.O. Bond at a Glance GOB Programs GOB Projects Mitigating the Effects of Sea Level Rise and Flooding
Total Cost
GOB Program
$40,000,000
$40,000,000
Roadway Improvements/Complete Streets South
Series 1
Series 2
$14,000,000
Roadway Improvements/Complete Streets North
$13,000,000 $64,550,000
$23,300,000
2023 Beach Nourishment & Breakwater Analysis
$3,000,000
2026 Beach Nourishment & Breakwater Analysis Cont.
$4,500,000
Breakwater Construction
$7,900,000
Breakwater Mitigation Hardening Infrastructure to the Effects of Hurricanes
Series 4
$13,000,000
Roadway Improvements/Complete Streets Central Protecting the Village's Beaches and Shoreline
Series 3
$7,900,000 $49,200,000
$35,200,000
Hardening & Undergrounding Phase 1 (South)
$9,000,000 $11,500,000
Hardening & Undergrounding Phase 2 (Central)
$10,000,000
Hardening & Undergrounding Phase 3 (North)
$4,700,000
Hardening & Undergrounding Phase 4 (Mashta) $153,750,000
$98,500,000
$25,000,000
$30,000,000
$30,900,000
$12,600,000
G.O. Bond Series 1: $25 million Storm water Fee
K-8 Stormwater Improvements
Roadway Improvements
Beach Nourishment 2023 + Preliminary Analysis (breakwater)
Utility Underground Phase 1
G.O. Bond Series 1: Tax Impacts Wait, I already pay taxes‌ Yes, you do, but the Village of Key Biscayne receives less than 20% of the property tax dollars that you pay.
Village of Key Biscayne Sample Tax Bill
Debt (1st Series): Interest Rate* Term (years) Annual Debt Service Total Assessed Value - July 1, 2020 Debt Service Millage Taxable Value of Property ** Homestead Exemption*** Taxing Authority Miami-Dade School Board School Board Operating School Board Debt Service State and Other Florida Inland Navigation Dist South Florida Water Mgmt Dist Okeechobee Basin Everglades Construction Proj Childrens Trust Authority Miami-Dade County County Wide Operating County Wide Debt Service Library District Municipal Governing Board Key Biscayne Operating Key Biscayne Debt Service GRAND TOTAL
25,000,000 2.75% 30 1,230,000 8,202,651,483 0.1578 550,000 Yes Millage
Assessed
Exemption
Taxable
7.0250 0.1230
550,000 550,000
(25,000) (25,000)
525,000 525,000
0.0320 0.1152 0.1246 0.0397 0.4680
550,000 550,000 550,000 550,000 550,000
(50,000) (50,000) (50,000) (50,000) (50,000)
500,000 500,000 500,000 500,000 500,000
16.00 57.60 62.30 19.85 234.00
4.6669 0.4780 0.2840
550,000 550,000 550,000
(50,000) (50,000) (50,000)
500,000 500,000 500,000
2,333.45 239.00 142.00
3.2187 0.1578 16.7329
550,000 550,000
(50,000) (50,000)
500,000 500,000
1,609.35 78.92 8,545.17
*Interest Rates subject to change ** Median Taxable Value of VKB Properties: Multi-Family Residential Single Family Home Village-Wide Residential
Tax
580,000 1,573,000 679,000
***The 1st $25,000 of the homestead exemption applies to all taxing authorities. The 2nd $25,000 excludes School Board taxes
$
$
3,688.13 64.58
THANK YOU
QUESTIONS
Email: VKBresilience@keybiscayne.fl.gov